Early this evening, the federal government announced it was invoking the Emergency Measures Act to respond to protests which have affected critical infrastructure and the economy. 

The government provided some details about the powers it intends to extend under the scope of the Act, but additional details are unlikely to be available before Tuesday. 

This evening’s announcement suggested that new powers for FINTRAC will be invoked, in addition to new responsibilities for financial institutions. 

• Financial institutions (FIs) were specifically mentioned by Trudeau: "Financial Institutions will be authorized or directed to render essential services to help address the situation including by regulating or prohibiting the use of property to fund or support illegal blockades." 
• During the news conference, Minister Freeland then specified the new measures that will be implemented immediately under the Act:  
• "Broadening the scope of Canada's anti-money laundering and terrorist financing rules to cover crowdfunding platforms and the payment service providers they use. These changes cover all forms of transactions including digital assets such as cryptocurrencies." 
• "As of today, all crowdfunding platforms and the payment service providers they use must register with FINTRAC and they must report large and suspicious transactions to FINTRAC." The government has stated it will bring forward legislation to bring these authorities to FINTRAC on a permanent basis at a future date. This will take time to implement. 
• "As of today, a bank or other financial service provider will be able to immediately freeze or suspend an account without a court order. In doing so they will be protected against civil liability for actions taken in good faith. Federal government institutions will have a new broad authority to share relevant information with banks and other financial service providers to ensure that we can all work together to put a stop to the funding of these illegal blockades." 
• The order under the Emergencies Act is to immediately "authorize Canadian financial institutions to temporarily cease providing financial services where the institution suspects that an account is being used to further the illegal blockades and occupations. This order covers both personal and corporate accounts.” FIs are directed to review their relationships with anyone involved in the illegal blockades and report to the RCMP or CSIS. 

The Prime Minister and government ministers emphasized the time limits of the Emergency Measures Act, which extend to 30 days with a parliamentary oversight committee. While the provisions of the proclamation are effective immediately after an emergency is declared, a motion confirming the emergency must be put before Parliament within seven days.

Additional details are likely to be available on Tuesday. 

Because credit unions are reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, these measures are likely to apply to provincially-regulated institutions, however CCUA is actively pursuing clarity on these matters and will provide an answer as soon as possible. 

CCUA will continue to closely monitor developments relating to the Emergency Measures Act and provide additional communications and analysis to credit unions as details emerge. 

If you have questions, please email us at governmentrelations@ccua.com.